DTN Closing Grain Comments

General Comments:

Corn was down 1 1/2 cents in the July contract and down 1 3/4 cents in the December. Soybeans were down 3 3/4 cents in the July contract and down 1/2 cent in the November. Wheat closed down 1/4 cent in the July Chicago contract, down 1 cent in the July Kansas City and up 6 3/4 cents in the July Minneapolis contract.

The June U.S. dollar index is up 0.31 at 97.16. August gold is down $5.50 at $1,269.90 while July silver is down 14 cents and July copper is up $0.0025. The Dow Jones Industrial Average is up 112 at 21,120. July crude oil is down $0.16 at $48.16. July heating oil is down $0.0205 while July RBOB gasoline is down $0.0006 and July natural gas is down $0.059.

Corn:

July corn closed down 1 1/2 cents Thursday, continuing to zig and zag this week inside its narrow sideways range. After prices benefited from USDA's lower crop rating on Wednesday, Thursday's prices were pressured by a 10-day forecast that offers hope for drier, more crop-friendly weather in the eastern Midwest. There are still showers expected around the Great Lakes the next seven days, but the future is starting to look more summer-like. For most of the Corn Belt, drought is not this year's problem, but Thursday's U.S. Drought Monitor did show increased areas of abnormal dryness in the Dakotas that deserve watching. Brazil's second corn harvest has begun, but it will still be a while before those supplies are competing for exports, so Friday's weekly sales report should show another decent week of corn shipments. With plenty of uncertainty about the size of the 2017 corn crop, July corn continues to trade sideways, under the April low of $3.79 1/2. DTN's National Corn Index closed at $3.35 Wednesday, priced 37 cents below the July contract and down from its highest price in 11 weeks. In outside markets, the June U.S. dollar index is up 0.31 after the private firm, ADP, reported an increase of 253,000 private sector jobs in May, more than was expected. The U.S. Labor Department will release May's non-farm payrolls on Friday morning.

Soybeans:

July soybeans closed down 3 3/4 cents Thursday, also pressured by an extended forecast that looks more favorable for planting after this weekend. If soybeans get past this year's planting hurdles -- and it looks like they will -- they will then be looking at a June forecast with no extreme heat expected, and the Dakotas showing the only concerns of drought in the Midwest. Brazil is still shipping soybeans from their record harvest this year, which is a bearish recipe for soybean prices and goes along with the selling that we have seen since last Thursday's new one-year low. FOB soybean prices in Brazil and at the Gulf remain very close, so Friday's export sales report is likely to show another decent week of off-season business for U.S. soybeans. So far, July soybeans and meal both remain in downtrends with a favorable forecast ahead. DTN's National Soybean Index closed at $8.50 Wednesday, priced 66 cents below the July contract and at its lowest price in over a year.

Wheat:

July Chicago wheat closed down a quarter-cent and July K.C. wheat was down a penny, but July Minneapolis wheat started the new season with a bang, closing up 6 3/4 cents at its highest price in 11 months. Factors helping commercials find this year's spring wheat prices appealing include the anticipation of a 14% cut in U.S. spring wheat production in 2017, growing areas of abnormally dry conditions in the Dakotas, planting delays in Canada, and this year's winter wheat problems. Outside North America, wheat problems appear minor so far with dryness noted in Spain, northern Ukraine and China. Winter wheat prices are holding sideways in the low-$4s while July Minneapolis wheat is one of the few grain contracts currently trending higher with support from increased commercial demand. DTN's National SRW index closed at $3.97 Wednesday, priced 33 cents below the July contract and down from its highest price in eleven weeks. DTN's National HRW index closed at $3.55, down from its highest price in 10 months.

Todd Hultman can be reached at todd.hultman@dtn.com

Follow Todd Hultman on Twitter @ToddHultman1

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